The founders of Egg financial services have launched a revolutionary online marketplace for loans.

<ed.note>Let me know if you hear of any P2P stock exchange stories…</ed.note>

An online exchange called Zopa has been launched that enables members to borrow or lend up to GBP25,000 from peers rather than using a traditional bank or building society. Building on the eBay concept, the website is a market for lending which provides investors with higher returns and borrowers with preferential rates to those offered on the high street. However, the concept may be a tough sell.

Individuals can sign up to Zopa as either a borrower or a lender. On application, a borrower’s credit rating is checked with Equifax and Zopa undertakes anti-fraud checks. The borrower is then placed into one of two markets depending on their credit rating, one catering for applicants with a medium to good credit rating and one for individuals with a very good rating. The borrower then stipulates a rate at which they are prepared to borrow, the amount of the loan and the repayment period.